SUBSCRIBER NOTE: Schedule change for Platts USGC 93 octane gasoline assessments

S&P Global Platts will continue to assess US Gulf Coast 93-octane conventional gasoline (V grade) on the Colonial Pipeline on the most prompt available cycle, following an announcement by Colonial that it will only ship the grade on alternate cycles with effect from the 37th shipping cycle later this summer.

This means that after the 37th cycle passes its scheduling date, expected to be at some point in late June, the Platts V grade assessment will move to the 39th cycle, while all other Platts assessments for Colonial Pipeline gasoline grades will reflect product shipping on the 38th cycle.

Once the 39th cycle schedules, the V grade assessment will move to the 41st cycle, then the 43rd, and so on through the year.

In line with current methodology, Platts V grade assessments will roll to the next available cycle after the scheduling date on a given cycle for conventional 87 unleaded (M grade).

Platts will continue to assess the most prompt available cycle for V grade, in the event of changes to Colonial's pipeline calendar such as the dropping of a cycle. Colonial ships in 72 cycles a year, or six cycles a month.

The change to V grade cycles on the pipeline will also impact the Platts assessment for USGC unleaded 89 octane gasoline, as this is typically assessed from the M and V grade assessments.

As a result, the 89 unleaded assessment will reflect the value of product on the same pipeline cycle as the V grade assessment.

The assessments affected by this change, which are published on Platts Global Alert page 330, in US Marketscan and in the Platts price database, are the following:

USGC Unleaded 89 PGAAY00 USGC Unleaded 93 PGAJB00

Colonial said May 11 it was reducing the number of cycles for the shipment of V grade due to falling volumes of the grade being shipped on the pipeline, with some deliveries being constrained by physical limitations due to the low volumes.

If the move to alternate cycles does not alleviate this problem, Colonial has said it would be required to eliminate all V grade shipments.

Platts will continue to monitor this situation and welcomes industry feedback on all matters regarding the related assessments.

Please send any feedback by to americas_products@spglobal.com and pricegroup@spglobal.com.

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